Assessment reopening beyond four years fails where recorded reasons omit failure to disclose material facts and rest on change of opinion

Reopening of assessment beyond four years under section 148 requires recorded reasons to show failure to fully and truly disclose material facts. Where that jurisdictional fact is absent, and the notice is based only on a change of opinion, the reopening cannot be sustained. The recorded reasons in this instance did not disclose the required non-disclosure by the assessee, so the notice was invalid and the High Court's quashing of it was upheld.

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Issues: Whether reopening of assessment beyond four years under section 148 was valid when the recorded reasons did not disclose failure to fully and truly disclose material facts and the reopening was based on a change of opinion.

Analysis: Reopening an assessment beyond four years requires satisfaction of the statutory conditions precedent. On the recorded reasons, the jurisdictional requirement of failure to disclose material facts was absent. The reopening was founded on a change of opinion, which could not sustain the notice. The High Court had therefore correctly quashed the reopening notice.

Conclusion: The reopening notice under section 148 was not valid and the challenge to it failed.

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